Secondary market activity slowed down considerably on Monday, as expected, as the marker absorbed news of this month’s auction.
Executions on the trading board, however, rose slightly to 3.3 billion driven by transactions closed in the previous week on the IFB1/2018/15.
The shilling opened lower at 101.10 yesterday against the US dollar and held within the same range the whole day.
“We still hold our view of a trading band of 101.00 – 101.30,” said financial analysts from Genghis Capital.
The CBK stayed out of the money market citing a square market. Liquidity remained flat, with the KES overnight rate holding at 4.48 percent, but slight pressure has begun to be felt.
The MPC meeting slated for 19th March has drawn a lot more attention this time around, coming from the last meeting where the committee said they are looking at adopting a more accommodative policy in the near term. This is also around the backdrop of IMF pressure to amend the interest rate capping law.
Limuru Tea Plc announced FY17 EPS of -9.22 which was a 15.97 percent deterioration.
Turnover declined 22.66 percent y/y to 80.37 million shillings which were attributed to a drop in sales volumes which outpaced the improved market prices.
Green leaf decreased 35 percent y/y to 2.04 million kilograms in the year on account of the prolonged drought experienced in the East of Rift Valley.
The industrial strike by Kenya Plantation and Agricultural Workers Union (KPAWU) which affected the tea workers due to non-implementation of a salary hike also dented sales volumes in the year. The Directors did not recommend a dividend payment.